Wednesday, January 21, 2009

New Trade: RUT Call Spread

Today the market rallied pretty hard, sucking up all the losses of yesterday. I sold the call spread leg of my iron condor on the RUT. Specifically, the trade was:

RUT Bear Call Spread 540/530 @ .50

I haven't yet shared my condor rules on the blog, but this is a far out of the money spread that I will allow a lot of room on. The credit of .50 is the minimum I will accept on a condor for one side. The other thing I should note is that I leg into my condors. Lately we have not had more than one or two green days at a time, so with a rally this hard I decided to pull the trigger.

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